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Simeon Mitropolitski

Simeon Mitropolitski is a Canadian analyst, of Bulgarian origin, and a former syndicated columnist with the Bulgarian News Agency (BTA). He is the author of several hundred articles dealing with hot political and economic topics, both national and international.

He was part of the first group of Bulgarian intellectuals and students that began the opposition movement that finally put an end to the communist regime in this country in 1989, and in 1996-1997 participated in international observation teams during the elections in several Balkan countries - Romania, Albania and Bulgaria.

In 2002 Simeon and his family moved from Bulgaria to Canada where they live now in Montreal, province of Quebec. Simeon is a Master of Political Science from McGill University and a B.A. of Political Science and History.

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20 May 2008

New Zealand: Market plateau turns down

© 2008, IRED.Com, Inc., Simeon Mitropolitski

After several years of more or less gradual appreciation on the residential real estate in New Zealand, the global market slump seems to have reached this far-away country. After reaching a peak near the end of 2007, the residential prices there are slowly eroding, and in April 2008 they were at approximately the same level as exactly one year ago (with the inflation factor the real prices are actually more than 1 percent lower than 12 months ago). Despite the numbers, there are several factors that influence the market, making the current slump rather moderate.

On a positive note, the economy is growing well and is still creating new jobs. The level of wealth distribution in the country is fairly egalitarian, thus buffering to a large degree market shocks. There are and there will be more shortages of workers in many fields; therefore migrating to New Zealand, especially for people with little or no English knowledge may be a good long-term investment. For persons coming from other rich countries New Zealand offers quiet life in short distance from the largest urban areas and a mild climate. This is a very peaceful society in terms of criminality and people generally feel in security around the clock. People with low paid positions may find the life in New Zealand more awarding than in Europe or in North America.

On a negative note, however, the real estate market, especially after the devaluation of the U.S. dollar has become quite expensive for Americans. There are, unfortunately, several reasons why people may decide to move out of New Zealand. For those who are born there or have just arrived other factors may make them think twice about moving out of the country, e.g. to Australia, or moving back, e.g. to Europe or to North America. The reason for moving to Australia is that its economy traditionally looks even better compared to New Zealand and offers even higher wages for similar jobs. Moving to Australia doesn't even look like permanent emigration for many Kiwis, but rather like temporary relocation in search for better jobs.

Residential prices in New Zealand:

  • Apr 2008 - 349,000 (the peak has been reached at the end of 2007)
  • Apr 2007 - 349,000
  • Feb 2006 - 295,000
  • May 2005 - 272,000
  • May 2004 - 248,000
  • May 2003 - 210,000
  • May 2002 - 188,000
  • May 2001 - 170,000
  • May 2000 - 172,000
  • May 1999 - 167,000
  • May 1998 - 164,000
Source: Real Estate Institute of New Zealand. Prices are in NZ dollars ($1US = $1.29 NZD in May 2008)


Country profile:
  • Area: 268,680 sq km
  • Population: 4.2 million (July 2008 est.).
  • Population growth rate: 0.971% (2008 est.).
  • Net migration rate: 2.62 migrant(s)/1,000 population (2008 est.).
  • Total fertility rate: 2.11 children born/woman (2008 est.).
  • GDP per capita: purchasing power parity $27,300 (2007 est.).
  • GDP real growth rate: 3% (2007 est.).
  • Unemployment rate: 3.5% (2007 est.).
  • Main trading partners: Australia, the United States, Japan, China, United Kingdom, and Germany.
  • Internet users: 3.2 million (2008).
(Sources: CIA World Factbook 2008, Reuters)

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See also the directory of companies providing real estate services in, and general real estate information of New Zealand.

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